Oracle Value Chain Planning Enables leading edge and transformational business processes SCM Product Solution Consulting

<Insert Picture Here>

Oracle Value Chain PlanningEnables leading edge and transformational business processes

SCM Product Solution Consulting

© 2008 Oracle Copyright, Proprietary & Confidential

Agenda

• Key business management point in SCM solution

• Key business process in SCM solution

• Our key SCM product family and modules for china market

2


Today’s Value Chain is Complex

Suppliers Customers

InnovationInnovation

ProcurementProcurement

Human Capital Management

Va

lue

Cre

atin

gA

ctivities

Su

pp

ortin

gA

ctivities

Financial Management

• Geographically Distributed• Dynamically Networked

• Increasingly Collaborative• Product & Service Oriented

InboundInboundLogisticsLogistics OperationsOperations OutboundOutbound

LogisticsLogisticsMarketingMarketing& Sales& Sales ServiceService

Value Creation


Oracle’s Unique Offering Comprehensive Suite of Best in Class Capabilities

Innovation

Procurement

Human Capital Management

Va

lue

Cre

atin

gA

ctivities

Su

pp

ortin

gA

ctivities

Financial Management

InboundLogistics

OperationsOutboundLogistics

Marketing& Sales

Service

Strategic Network OptimizationStrategic Network OptimizationStrategic Network OptimizationStrategic Network Optimization

Advanced Supply Chain PlanningAdvanced Supply Chain PlanningAdvanced Supply Chain PlanningAdvanced Supply Chain Planning

ERPERPERPERP

Business Platform, Applications Integration ArchitectureBusiness Platform, Applications Integration ArchitectureBusiness Platform, Applications Integration ArchitectureBusiness Platform, Applications Integration Architecture

Warehouse ManagementWarehouse ManagementWarehouse ManagementWarehouse Management

Transportation ManagementTransportation ManagementTransportation ManagementTransportation Management

ManufacturingManufacturingManufacturingManufacturing

Production SchedulingProduction SchedulingProduction SchedulingProduction Scheduling

CRMCRMCRMCRM

Service Supply ChainService Supply ChainService Supply ChainService Supply Chain

Product Lifecycle ManagementProduct Lifecycle ManagementProduct Lifecycle ManagementProduct Lifecycle Management

Demand Management - Real-Time S&OPDemand Management - Real-Time S&OPDemand Management - Real-Time S&OPDemand Management - Real-Time S&OP

Business Intelligence and AnalyticsBusiness Intelligence and AnalyticsBusiness Intelligence and AnalyticsBusiness Intelligence and Analytics

Inventory PlanningInventory PlanningInventory PlanningInventory Planning


Design Procure Make Deliver Sell

When? Where?

Schedule, monitor, control and adjust production

Production scheduling Supplier scheduling Customer order promising / tracking

Op

era

tion

al

How much?

Deploy resources to match supply to demand

Collaborative demand forecast Procurement, production, logistics plan Stakeholder inventory targetsT

acti

cal

What?

Establish objectives, policiesand operating footprint

Objectives Supply policies (service levels) Network designS

trate

gic

Do

Buy, build, store and transport

Order cycle Material movement

Execu

tion

Value Chain Management Process AreasS

up

pliers

Cu

sto

mers

Complete : Open : Integrated


Design Procure Make Deliver Sell

When? Where?

Schedule, monitor, control and adjust production

Work center scheduling Supplier scheduling Customer order promising / tracking

Op

era

tion

al

How much?

Deploy resources to match supply to demand

Collaborative demand forecast Procurement, production, logistics plan Stakeholder inventory targetsT

acti

cal

What?

Establish objectives, policiesand operating footprint

Objectives Supply policies (service levels) Network designS

trate

gic

Do

Buy, build, store and transport

Order cycle Material movement

Execu

tion

Su

pp

liers

Cu

sto

mers

Strategic Decisions That Are ExecutedComplete : Open : Integrated

CustData

Trade / Deal Mgmt

PLM

S&OP

Advanced Planning

Transportation & Logistics

Inventory & Network

Move ? Make ? Buy ?

Scheduling TPM

PTP

Volume Planning

Retail ExecutionTrans Mgmt

Supply Chain Planning – Fast MRP, DRP, Constraints, Optimize

Process

Discrete

Whs Mgmt

Production Scheduling

Service Parts Planning

Demand Management – Sense, Respond, Shape

Network and Inventory – Strategy, Plan, Optimize

Command Center

Real-Time Sales and Operations Planning

EPM – Financial Planning & Strategic S&OP

Demand Signal Rep


Demand Management is the key

RetailerManufacturer DistributionSupplier Consumer

Dem

and

Dem

and

Time

Dem

and

TimeTime

Dem

and

Time

Dem

and

Time

原因 :• 预测不准• 大量促销 • 提前期不稳定• 库存控制参数• 批量处理

现象 :• 库存过剩• 生产效率低• 分销渠道利用率低• 断货导致的客户服务水平低• 供应链成本高

措施 :• 需求驱动的供应链• 可信任的协同和信息共享• 借助信息化技术的力量


World Class Demand ManagementSense Demand: Arrive at a More Accurate Consensus Forecast

Gain Real-Time Visibility to All Demand Signals • Capture demand closer to the point of actual consumption;

forecast at a more granular level; accommodate multiple units of measure and currencies

Accurately Predict Demand via Adv. Analytics• Establish baseline forecast using quantitative & qualitative

data; utilize high precision statistical forecasting without requiring a statistical background

Rapidly Reach a Better Consensus Forecast• Collaborate with internal and external constituents; quickly

identify and react to demand changes and exceptions; leverage multi-dimensional analysis techniques

“Corporations that have adopted demand-driven supply chains are outperforming their competitors by a wide

margin.”

- Start with Demand

Shipments

MarketingForecast

Order History

Customer Sales

CollaborationWorkbench

Channel Data

DemandHubDemandHub

DemantraDemantra


Predictive Trade Planning & OptimizationShape Demand: Influence Who Buys What Products, and When

• Profitably optimize future promotions by incorporating promotional effects (e.g. cannibalization and halo)

• Influence product purchases based on production capacity and inventory

• Collaboratively manage all funds, sales, and account planning

• Integrate analytics with baseline forecast and lift calculations to predict and monitor trade fund spending

0

500

1000

1500

2000

2500

3000

3500

4000

Period 1 Period 6 Period 11

Ca

se

s

Cannibalization

Pre- and post-effects

Competitive switching

Category growth

Baseline

Actual

Past Future

0

500

1000

1500

2000

2500

3000

3500

4000


Cannibalization



Category growth

Baseline

Actual0

500

1000

1500

2000

2500

3000

3500

4000


Cannibalization



Category growth

Baseline

Actual

DemantraDemantra


10

• Interactively engage management

• Move from a periodic reactive to a real time, iterative and proactive process

– Reduce cycle time and improve alignment by automating the consensus process

– Profitably balance supply, demand, and budgets

• Drive tactical decisions into operational planning and execution, and monitor performance

• Start quickly with best practice templates and easily adapt to your business – evolve at your own pace

Move from a static to a dynamic S&OP process

* Planned for future

Maximize sales and improve operations through a continuous S&OP process

ContinuousS&OP

Demand sensingand shaping

Supplyplanning

TradeManagement

FinancialPlanning

Product Planning

RiskManagement

Engineering

FinanceSupplyProduct Demand

Interactive, extended S&OP process

Traditional S&OP process

Sales

Operations

Strategy

Finance

Marketing

DemantraDemantra


Consider all costs and constraints that impact the decisions

Capacity Constraints (Hard and Soft)

• Supply constraints• Manufacturing constraints• Transportation constraints• Storage and inventory constraints• Target service levels• Dynamic safety stock

Costs ($): Real and Penalty , Variable and Fixed

Transportation (inbound, outbound)• Storage and inventory carrying costs• Fixed costs (startup, shutdown, operating

costs)• Material supply• Manufacturing and labor• Price (for profit optimization)

Suppliers Transportation Manufacturing Transportation Transportation CustomersDistributors

Strategic Network OptimizationSNOSNO


Global Inventory OptimizationAchieve Greater Order Fulfillment Flexibility

• Improve delivery accuracy by storing common subassemblies which are completed only when an order is placed

• Maximize on-time product delivery while minimizinginventory costs

• Reduce inventory write-offs

Determine Inventory Levels & Locations Based on Anticipated Demand

Inv

en

tory

Co

st

Product Delivery

10 30 50 75 80 85 90 95 100

WithoutOracle

WithOracle

LowerLowerInventoryInventoryCostCost

ImproveImproveOn-TimeOn-TimeDeliveryDelivery

IOIO


13

Synchronize plans across the enterprise Holistic supply, distribution, and manufacturing planning

“Significantly reduced inventory levels, improved predictability of supply, improved order to

delivery cycle time, and improved Sales & Operations collaboration”Robert Moon, CIO of Leapfrog

• Supply chain and distribution planning– Product family and item level planning– Alternate components, resources, processes, suppliers,

facilities, and ship methods– End-item substitution– Critical items and resources; aggregate resources– Bills of distribution and transfer rules– Fair-share allocation– Load consolidation– Include customer and supplier facilities

• Manufacturing planning– Sequence dependent setups/changeovers– Simultaneous resources– Batch and alternate resources– Minimum transfer quantities– Complex, network routings– By-products and co-products

ASCPASCP


Adaptable – Segment the problem as needed

• Adapts to your current business model– Single plan or multiple plans; hub-and-spoke planning models

• Evolve planning model at your own pace– Re-configure easily by modifying plan options instead of re-implementing or re-modeling

• Multiple models can co-exist

GE Transportation - Avionics has moved from running separate plans in 36 facilities to running a single holistic plan across their DCs, end-assembly, contract manufacturing, and component shops, and as a result has reduced their planning organization significantly

MULTIPLEPRODUCTION PLANS

SINGLE MPS,MULTIPLE MRPs

SINGLE HOLISTICPLAN

MRP Org 1 MRP Org 2 MRP Org 3All Organizations

MPS for BU 1 MPS for BU 2

MRPOrg 1

MRPOrg 2

MRPOrg 3

MRPOrg 4

MRPOrg 5

ASCPASCP


15

Increase shop floor throughput Improve shop floor efficiency

• Maximize production throughput– Optimize your shop floor; detect floating bottlenecks– Reduce WIP inventory by rapidly synchronizing multi-

stage production schedules– Account for complex setup and change-over

scenarios, machine breakdown, supply and resource shortages, co- and by-products, alternate resources, routings, and operations

• Model all elements of your shop floor– Work centers, resources and resource groups, shift

capacity, operating costs– Lead times: setup, change-over, and run– Sequence dependent setups, contiguous operations,

production campaigns, batching

• Release most optimal schedule– For process (OPM), discrete MFG), and semi-

conductor (OSFM) manufacturing

PSPS


16

ATP

Check

GOPDay 1 Day 2

• Multiple facilities

• Which plant makes what products and when

• Pre-builds based on capacity shortages

• Alternate facilities, suppliers and processes

Day 3

Production Schedule Org 1

8am 12pm

• Schedule a single facility

• Sequence Production to meet demands on this facility

• Account for detailed production constraints and come up with an executable schedule

4pm

PS – Production Schedule Org 2

PS – Production Schedule Org 3

Constrained dependent demands independent demands planned orders

ASCP – Production Plan PS – Production Schedules

Production Plan Org 1, 2, and 3

Execution work orders Process batches, and Lots scheduled detailed activities

Integrated manufacturing planning & scheduling


17

Suppliers/Manufacturing CustomersCentral DCs

Comprehensive distribution planning

• Plan all distribution facilities holistically – Alternates, substitutes, bills of distribution, transfer rules, product family and product level, customer and supplier facilities

• Determine optimal supply allocation from plants to distribution centers– Fair share allocation– Inventory policy at multiple levels (max, target, safety stock)– Inventory rebalancing (circular sourcing)– Shipping method selection and load consolidation– Global forecast -> local allocation of supply across distribution network

• Automatically generate internal transfers and consolidated shipments– Integrated with Oracle Transportation Management (G-LOG) for carrier and mode selection

Distribution plan Consensus demand

Cross-enterprise synchronized view of supply and demand

Regional DCs

ASCPASCP


18

Dynamic fulfillment decisions

• Postpone fulfillment decision to supply planning

– Check availability before specifying shipping location

– Allocate supply to customers

• Dynamically consume and manage forecasts inline, based on where demand originates

– Forecast without reference to shipping facilities

– Consume forecast based on type of demand

Increase flexibility for your fulfillment decisions and improve delivery performance and inventory and capacity utilization and allocation

Region “East” Region “West” Region “South”

Orders andForecast

Orders and Forecast

Required AvailableR A R A R A

Shipments Shipments

DynamicAllocation

InsufficientAvailability

ASCPASCP


Global Transportation ManagementMeet Varying Customer Demands for On-Time Delivery at Lower Cost

OptimizeModes& Routes

• Plan and re-plan across multiple legs, tiers, nodes, and modes (truck, air, train, ocean)

• Handle all supplier inbound and customer outbound deliveries

• Display results via intuitive, graphical UI

AutomateExecution &

CollaborationPayments

Event Mgmt

• Manage internal and 3rd party fleets(eg. LSPs) in the same system

• Enable partners to transact and“self-update” (eg. pick-up request)

• Handle exceptions via automatedevent management notifications

• Integrated with shipping, receiving, inventory management & purchasing

• Manage the International Movement of Goods Within a Single System

• Optimize Logistics Networks through Global Control, Local Execution, and Central Management

OTMOTM


Closed-Loop Collaborative Planning Immediately Gain Value Chain Visibility to Both State and Direction

• Share forecasts and supply commits with customers and suppliers

• React immediately to disruptions in supply chain; enable partners to adjust accordingly

• Have completesupply chain visibility

Consensus Forecast and Production Plan

Supply Planning

Demand Hub &Multi-DimensionalAnalysis

AutomatedExceptions

S&OP Process

SingleHolistic Plan

Business Intelligence

Sales

Marketing

Mfg

Manufacturing

PortalPortalPortalPortal

Tier 2

Tier 1

CUSTOMERSCUSTOMERS SUPPLIERSSUPPLIERS

CPCP


21

Promise orders on-time, 24x7

• Promise orders based on global statement of availability:

– Material, Manufacturing capacity– Transportation capacity, Supplier capacity

• Drive fulfillment decisions based on demand and supply plans

– Promise based on optimal supply decisions

• Allocate available supply and capacity– By channel, customer, or product– Priority and stealing rules

• Manage commitments to key customers– Re-schedule and re-sequence your backlog

Improve on-time delivery through constrained order promising

Achieved a 98% delivery performance to promise date

GOPGOP


22

Monitor and manage

• Close the loop with embedded analytics– Provide insight to key decision makers

– Bridge the gap between analytics and planning through seamless integration with operational planning applications

– Leverage pre-built dashboards with rich content and KPIs

• Proactively respond to deviations in performance

– Identify root cause

– Define and evaluate alternative business scenarios

– Manage execution of scenarios; assign tasks to planners and other stakeholders

• Reduce decision making cycle time through process automation

– Use BPEL process flows to execute planning processes

– Configure and adapt

Enable holistic view of supply chain performance

Analytical Data

Planning Dashboards and Reports

Business scenario planning

Planning process automation

Execute scenarios

Scenario andActivity Management

Forecasting Supply Planning

Web Service enabled planning processes

Orc

hes

trat

eP

lan

An

alyz

e

APCCAPCC


23

Demantra Demand Management

Advanced SupplyChain Planning

Inventory Optimization

Demand from DM

Supply from ASCP or SNO

Inventory from IO

Close the loop with embedded analytics

Demantra Demand Management

Drilldown to details

Enable holistic view of supply chain performance and drill down to details

APCCAPCC


Agenda

• Key business management point in product solution

• Key business process in product solution

• Our key product family and modules for china market

24


Generate Baseline Forecast

Promotion Plan and Management

Customer Orders

Create Shipping Order

Work Order

Manufacturing Planning

Order history

Demantra

ASCP

Ship to customer

GOP

Match, schedule, or unschedule

Value Chain Planning ERP

Schedule orders

Distribution Planning

CP

Publish order forecastfor procurement Plan

Receive supply commitfor procurement Plan

High Level Business Process

S&OP

SNO

Network Optimization

IO

Inventory Optimization

Consensus Fcst

Consensus Fcst

Fcst Err

PS

Production Schedule

Sourcing Rule

InventoryRule

OTM

Transportation Plan

Transportation Capacity Plan

Purchasing Order


Transportation ManagementProcess Flow

2

3

4

56

1

7

8Capture Orders – Import

orders, purchases, returns, stock transfers into OTM. Use workflow to populate dates, sku size, planning

preferences, etc.

CaptureOrders

Plan &Optimize

ManageIn-transit

Re-planShipments

Audit & PayFreight

ExecuteShipments

Report &Analyze

ImproveOperations

Plan & Optimize – Select order dataset to plan into

shipments. Choose “Best” mode, route and carrier.

Decide fleet versus common carriage. Coordinate with

WMS and MFG.

Execute Shipments – Perform Global Trade

checks. Contact carriers (tender). Schedule

appointments. Order equipment. Interface with

parcel system for labels and manifests. Print shipping

docs (BOL, SED, CI, SLI).

Manage In-transit – Request and receive events from

supply chain partners including carriers. Track shipments, gain visibility, identify delays. Update

shipments with actual values (weight, pcs, equipment ID).

Re-plan Shipments – Rerate and route shipments based on updates. Send shipment and order changes to OM,

WMS, FINS. Generate customer freight charges

(bills) to associate with the order. Sent to A/R.

Audit & Pay Freight – Accrue freight. Allocate costs

to order lines. Establish Payment Rules and

Tolerances. Set invoice approval authority. Match,

approve and pay carrier invoices. Manage exceptions

/ accessorials.

Improve Operations – Leverage reports and analytics to improve

operations. Right size fleet. Procure better carrier rates (Sourcing). Feed network

optimization with transportation data to analyze

supply chain redesign.

Report & Analyze – Monitor dashboard to identify logistics

trends. Produce periodic reports for managing

operations. Build ad hoc reports. Automate

distribution of reports to key team members.


消费品行业– 销售和运营管理流程

SAMPLE


Agenda

• Key business management point in product solution

• Key business process in product solution

• Our key product family and modules for china market

28


29

Demand

Management

Predictive Trade

Planning

Strategic Network

Optimization

Collaborative

Planning

Advanced Supply

Chain Planning

Inventory

Optimization

Demand Signal

Repository

Advanced Planning Command Center

Deduction and

Settlement Mgmt

Real-Time

S&OP

Global Order

Promising

Production

Scheduling

Financial Planning

PLM

Trade Mgmt

SCM

VALUE CHAIN PLANNING

Transportation

Management

Service

Parts Planning

SCM

Key Product Families

Trade Promotion

Optimization

Advanced Forecasting

& Demand Modeling

Legacy Systems

Sales

EnterpriseOne

World

Future


Transportation Order Management

Global VisibilityGlobal Visibility

Supply Chain Event ManagementSupply Chain Event Management

Business Intelligence (Analytics & Reporting)Business Intelligence (Analytics & Reporting)

Freight Forwarding and BrokerageFreight Forwarding and BrokerageBu

y/S

ell C

on

trac

t M

anag

emen

tB

uy/

Sel

l Co

ntr

act

Man

agem

ent

Co

op

erat

ive

Ro

ute

Pla

nn

ing

Co

op

erat

ive

Ro

ute

Pla

nn

ing

Tra

nsp

ort

atio

n S

ou

rcin

gT

ran

spo

rtat

ion

So

urc

ing Transportation Planning

Transportation Execution

Freight Payment, Billing and Claims

Oracle Transportation Management (G-Log)


31

Documents

Oracle Value Chain Planning Enables leading edge and transformational business processes SCM Product Solution Consulting